SI - Why Crypto Was Down Big This Week
There wasn't a lot of good news in the world of cryptocurrencies this week. FTX filed for bankruptcy protection late last week and the fallout continued throughout this week, culminating in a filing on the company's financial and operating position that included disturbing revelations like payment approval given by a supervisor posting an emoji .
According to S&P Global Market Intelligence , as of this writing, shares of Silvergate Capital (NYSE: SI) are down 18.9% since Friday's closing price, Marathon Digital Holdings (NASDAQ: MARA) is off 17.8%, Coinbase Global (NASDAQ: COIN) is down 15.1%, and Solana (CRYPTO: SOL) tokens have fallen 13.9%. The declines are similar, but the reasons each fell are very different.
There are a few things going on with crypto that affect these companies and token differently. FTX and its founder, Sam Bankman-Fried, were major holders of Solana and had helped build a number of applications on the platform. FTX and Bankman-Fried's trading firm, Alameda Research, which also filed for bankruptcy protection, may need to liquidate their Solana holdings and it looks like traders are bearish on the ecosystem given the tie between the two.
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Why Crypto Was Down Big This Week